Oman to cut fuel subsidy in 2016 amidst oil slump

Up to 68.7% of professionals surveyed by Oman's Chamber of Commerce are opposing the subsidy cut aimed at reducing the impact of oil prices costing the country $55m

The above image is for illustrative purposes only.
The above image is for illustrative purposes only.

Oman is likely to "gradually" cut fuel subsidies starting next year. 

All savings and benefits from the cut will be paid towards the establishment of economic projects in the Sultanate. 

The move, which comes amidst a slump in global oil prices, is also reportedly being implemented to curb fuel smuggling. 

According to Gulf News, "an official from the Sultanate's Ministry of Finance confirmed that subsidies would be cut, adding that the reduction will be gradual in order to ensure that the public will not suffer from the move". 

In a study conducted by Oman’s Chamber of Commerce, up to 68.7% of professionals from various business and government sectors opposed the move, with18% in favour.

Darwish Al Beloushi, Minister responsible for Financial Affairs, stated that the Omani government is likely to start cutting fuel subsidies this year in reaction to low oil prices.Al Beloushi believes that people will be more understanding as the natural resources are being overused.

According to Oman’s Minister of Oil and Gas, Mohammad Al Ruhmi, low oil prices are costing Oman up to $55m (OMR21.1m) per day.

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